SEGMENTS

12 Months Ended

Jan. 31, 2022

Segments [Abstract]

SEGMENTS

NOTE 14 — SEGMENTS

The Company’s reportable segments are business units that offer products through different channels of distribution. The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products under the Company’s owned, licensed and private label brands, as well as sales related to the Vilebrequin business. Wholesale revenues also include revenues from license agreements related to our owned trademarks including DKNY, Donna Karan, Vilebrequin, G.H. Bass and Andrew Marc. The retail operations segment consists primarily of direct sales to consumers through Company-operated stores, which, prior to the completion of the retail restructuring in fiscal 2021, consisted primarily of Wilsons Leather, G.H. Bass, DKNY and Karl Lagerfeld Paris stores, substantially all of which are operated as outlet stores. Sales through Company-owned digital channels, with the exception of Vilebrequin, are also included in the retail operations segment. As a result of the restructuring of the Company’s retail operations, the Company closed its Wilsons Leather, G.H. Bass and Calvin Klein Performance retail stores during fiscal 2021. After completion of the restructuring, the Company’s retail operations segment consists of DKNY and Karl Lagerfeld Paris stores, as well as the digital channels for DKNY, Donna Karan, Karl Lagerfeld Paris, G.H Bass, Andrew Marc and Wilsons Leather.

The following segment information, in thousands, is presented for the fiscal years ended:

	January 31, 2022
	Wholesale		Retail		Elimination (1)		Total
Net sales	$	2,710,787	$	117,656	$	(61,905)	$	2,766,538
Cost of goods sold		1,782,533		57,721		(61,905)		1,778,349
Gross profit		928,254		59,935		—		988,189
Selling, general and administrative expenses		567,949		80,066		—		648,015
Depreciation and amortization		24,023		3,603		—		27,626
Asset impairments, net of gain on lease terminations		368		1,087		—		1,455
Operating profit (loss)	$	335,914	$	(24,821)	$	—	$	311,093

	January 31, 2021
	Wholesale		Retail		Elimination (1)		Total
Net sales	$	1,916,763	$	170,421	$	(32,038)	$	2,055,146
Cost of goods sold		1,229,548		113,194		(32,038)		1,310,704
Gross profit		687,215		57,227		—		744,442
Selling, general and administrative expenses		444,549		160,553		—		605,102
Depreciation and amortization		31,998		6,627		—		38,625
Asset impairments		1,010		16,863		—		17,873
Operating profit (loss)	$	209,658	$	(126,816)	$	—	$	82,842

	January 31, 2020
	Wholesale		Retail		Elimination (1)		Total
Net sales	$	2,862,889	$	385,910	$	(88,335)	$	3,160,464
Cost of goods sold		1,925,062		205,797		(88,335)		2,042,524
Gross profit		937,827		180,113		—		1,117,940
Selling, general and administrative expenses		604,377		227,803		—		832,180
Depreciation and amortization		30,806		7,929		—		38,735
Asset impairments		412		18,959		—		19,371
Operating profit (loss)	$	302,232	$	(74,578)	$	—	$	227,654

(1) Represents intersegment sales to the Company’s retail operations segment.

The total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows:

	January 31,
	2022		2021		2020
	(In thousands)
Licensed brands	$	1,820,491	$	1,390,112	$	2,045,480
Proprietary brands		890,296		526,651		817,409
Wholesale net sales	$	2,710,787	$	1,916,763	$	2,862,889
Licensed brands	$	39,604	$	17,488	$	27,338
Proprietary brands		78,052		152,933		358,572
Retail net sales	$	117,656	$	170,421	$	385,910

The Company allocates overhead to its business segments on various bases, which include units shipped, space utilization, inventory levels, and relative sales levels, among other factors. The method of allocation has been applied consistently on a year-to-year basis.

The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows:

	January 31,		January 31,
	2022		2021
	(In thousands)
Wholesale	$	2,073,834	$	1,844,682
Retail		111,517		85,625
Corporate		557,177		506,079
Total Assets	$	2,742,528	$	2,436,386

The total net sales and long-lived assets by geographic region are as follows:

	2022				2021				2020
			Long-Lived				Long-Lived				Long-Lived
Geographic Region	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	2,365,919	$	938,947	$	1,755,791	$	834,181	$	2,774,492	$	964,476
Non-United States		400,619		150,724		299,355		258,165		385,972		231,973
	$	2,766,538	$	1,089,671	$	2,055,146	$	1,092,346	$	3,160,464	$	1,196,449

Capital expenditures for locations outside of the United States totaled $4.3 million, $3.0 million and $4.6 million for the years ended January 31, 2022, 2021 and 2020, respectively.